Osirium Technologies PLC COVID-19 Update and Contract Renewal (1351J)

TIDMOSI

RNS Number : 1351J

Osirium Technologies PLC

08 April 2020

8 April 2020

Osirium Technologies plc

("Osirium," the "Company" or the "Group")

COVID-19 Update and Contract Renewal

Osirium Technologies plc (AIM: OSI.L), a leading vendor of cloud-based cybersecurity software, today provides an update in relation to measures taken by the Company in response to COVID-19 and an update on the current trading environment ahead of publishing full year results in due course. The Company also announces the renewal of a contract with a major customer.

The Company's primary focus in these unprecedented times is the safety and health of employees, partners and customers. The Company has always made use of remote working and can confirm that all staff have now transitioned to this model during this lock down period. Business operations are continuing as usual with an online engineering, sales, marketing and support model for engaging with customers. Given the Group's largely software offering, the Company's teams are well set up to continue to support clients and our prospects remotely.

Whilst mindful of the rapidly evolving environment, the Company has seen little material impact on trading up to the end of March. It is difficult to predict the future impact on the Group, including the possibility of delayed decision making on behalf of new customers and cancelled industry events, and the Group is updating its business continuity plans accordingly. As at 31 March 2020, the Group had cash balances of GBP2.9 million which is being managed prudently and non-discretionary spend has been curtailed, including a temporary freeze to new hires. If, in the coming months, we were to see some slow-down in our customer win rate and activities, then we would take additional appropriate action.

The Group's client base and sales opportunities are across multiple sectors, including public, private and NHS, and the Group's business model is based on long-term contracts. Given the Group's high level of recurring revenue, strong backlog of contracted future revenue, and software offering that supports mission critical operations, the Board believes the business to be well positioned to withstand this period. The Board continues to monitor the situation closely as it develops and will continue to update investors as necessary.

Contract Renewal

The Group is also pleased to announce the renewal for a further 12 months of its contract with a combined grouping of two major UK regional Police Authorities. Under the terms of the contract Osirium will continue to provide its Privileged Access Management, Privileged Task Management and Privileged Session Management modules to protect 1,000 devices.

The customer's use of Osirium technology has continued to expand since its initial deployment covering 250 devices. As well as controlling internal access to critical assets across the infrastructure, Osirium Privileged Access Management manages and records third parties. Osirium Privileged Task Management is used to delegate the management of the Cisco network infrastructure to first and second line support without the need for device specific knowledge or access to the privileged accounts.

Notice of Results

The Group expects to publish results for the 12 months to 31 December 2019 as soon as practical.

David Guyatt, Chief Executive Officer, commented : " As announced at the time of our trading update, we exited 2019 with strong growth in bookings, and we enter the new year with continued business momentum. This is further demonstrated by today's contract renewal. In 2019 we recorded a 100% success rate in renewing subscriptions from our existing customers. I am delighted that the quality of our software, professional services and support sees this pattern continuing in 2020.

"Nonetheless, at the time of writing, we cannot ignore the increasing impact on our business of the Coronavirus pandemic and the uncertainties this creates on our current customers and prospects. To the best of our ability we have factored this into our planning and, with our expanded offering and a solid foundation of visible revenue, the Board has confidence in the Group's ongoing momentum."

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For further information:

 
 Osirium Technologies plc                  Tel: [phone] 
 David Guyatt, Chief Executive Officer 
  Rupert Hutton, Chief Financial 
  Officer 
  www.osirium.com 
 Stifel Nicolaus Europe Limited            Tel: [phone] 
  (Nominated Adviser and Broker) 
 Fred Walsh 
 Alma 
  (Financial PR) 
  Hilary Buchanan / Josh Royston           Tel: [phone] 
  / David Ison 
 

Notes to Editors:

Osirium Technologies plc (AIM: OSI) operates in one of the fastest growing parts of the cybersecurity market and is a leading vendor of Privileged Access Security solutions. Osirium's cloud-based products protect critical IT assets, infrastructure and devices by preventing targeted cyber-attacks from directly accessing Privileged Accounts, removing unnecessary access and powers of Privileged Account users, deterring legitimate Privileged Account users from abusing their roles and containing the effects of a breach if one does happen.

Osirium has defined and delivered what the Directors view as the next generation Privileged Access Management solution. Osirium's award-winning Privileged Task Management module further strengthens Privileged Account Security by minimising the cyber-attack surface and delivering an impressive return on investment benefits for customers. Building on Osirium's Privileged Task Management module, in May 2019 Osirium launched Privileged Process Automation, providing a highly-flexible platform for automating essential IT processes to set a new benchmark in IT Process Automation. This was followed by the launch of Privileged Endpoint Manager in December 2019, bringing the total portfolio to three complementary solutions.

Founded in 2008 and with its headquarters in Reading, UK, the Group was admitted to AIM in April 2016. For further information please visit www.osirium.com.

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April 08, 2020 02:00 ET (06:00 GMT)